Correlation Between Siamgas and IRPC Public
Can any of the company-specific risk be diversified away by investing in both Siamgas and IRPC Public at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Siamgas and IRPC Public into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Siamgas and Petrochemicals and IRPC Public, you can compare the effects of market volatilities on Siamgas and IRPC Public and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Siamgas with a short position of IRPC Public. Check out your portfolio center. Please also check ongoing floating volatility patterns of Siamgas and IRPC Public.
Diversification Opportunities for Siamgas and IRPC Public
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Siamgas and IRPC is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Siamgas and Petrochemicals and IRPC Public in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on IRPC Public and Siamgas is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Siamgas and Petrochemicals are associated (or correlated) with IRPC Public. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of IRPC Public has no effect on the direction of Siamgas i.e., Siamgas and IRPC Public go up and down completely randomly.
Pair Corralation between Siamgas and IRPC Public
Assuming the 90 days trading horizon Siamgas and Petrochemicals is expected to generate 0.69 times more return on investment than IRPC Public. However, Siamgas and Petrochemicals is 1.45 times less risky than IRPC Public. It trades about 0.0 of its potential returns per unit of risk. IRPC Public is currently generating about -0.43 per unit of risk. If you would invest 710.00 in Siamgas and Petrochemicals on September 23, 2024 and sell it today you would earn a total of 0.00 from holding Siamgas and Petrochemicals or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Siamgas and Petrochemicals vs. IRPC Public
Performance |
| Timeline |
| Siamgas and Petroche |
| IRPC Public |
Siamgas and IRPC Public Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Siamgas and IRPC Public
The main advantage of trading using opposite Siamgas and IRPC Public positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Siamgas position performs unexpectedly, IRPC Public can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in IRPC Public will offset losses from the drop in IRPC Public's long position.| Siamgas vs. Bangchak Public | Siamgas vs. IRPC Public | Siamgas vs. PTT Exploration and | Siamgas vs. Star Petroleum Refining |
| IRPC Public vs. PTT Public | IRPC Public vs. The Siam Cement | IRPC Public vs. SCB X Public | IRPC Public vs. Kasikornbank Public |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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